Problema Solution

Anne and Michael invested $8000 last year in tax-free bonds. Some of the bonds earned 8% interest while the rest earned 6% interest. At the end of the year, they had earned $580 in interest. How much did they invest at each interest rate?

Answer provided by our tutors

let


x = the money invested in the 8% interest bonds

y = the money invested in the 6% interest bonds


Anne and Michael invested $8000


x + y = 8000


at the end of the year, they had earned $580 in interest


0.08x + 0.06y = 580


by solving the system of equations


x + y = 8000

0.08x + 0.06y = 580


we find


x = $5,000


y = $3,000


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they invested $5,000 at 8% and $3,000 at 6%.